Anyone is the Charlotte, NC area specialize in BRRRR?

Question

About to begin my first BRRRR and wanted to speak to someone who has a great deal of knowledge on the topic. Would love to chat

Jefferson Ovalle · Answer

I am working on my first BRRRR this is how far I am and how I did It:

I talk to realtors in 3 different towns near charlotte, I told them my criteria, I am a GC so I can eye ball repair cost, once I started getting the emails from the realtors I analyze close to 25 deals with the BP calculator that tool pays for the pro membership by itself, then I posted the analysis on a forum and I got tons of feed back from pros, this community is awesome in that way, so I learned from their comments and I narrowed it down to the property that made sense, we put an offer today and I’m waiting for the response, my agent took a class yesterday and luckily enough the listing agent was at that class so my agent got a good feedback on our offer, so now it’s a matter of time, I’ll update this comment on Monday to let you know how it went,

Laura Shinkle · Answer

@Aidan Mulligan ask your real estate agent. They should know who best to refer you to. Not all mortgage lenders are good, just like not all agents are good. Lean on the team you have already, ask questions and tell them what you need. The more they know, the more they can help.

Stephanie P. · Answer

@Aidan Mulligan

We are everywhere these days:)

Aidan Mulligan · Answer

@Stephanie P. thank you, that helps a lot. Where do people find a mortgage broker? Is it as simple as a google search?

Stephanie P. · Answer

Yes, you should have picked your HML already.  Let them go over their guidelines.  Each lender is different.

Very general guidelines for hard money loans are, for first time rehabbers

• Be prepared to come to the table with 25-30% of the acquisition price plus closing costs
• Be prepared to have 3 month's of payments in reserves.  
• Your rate should be around 10-12 for an interest only loan with 3-4 points.
• Your rehab money will be covered 100% and paid out in draws as the work is complete

There are different variations of the loan to value and amount of rehab that's covered by the lender.  You should find a good mortgage broker to walk you through it. They probably have access to a couple of different HML's.

Best of luck

Stephanie

Aidan Mulligan · Answer

Mainly about timeline:

Tasks are create a scope of work, get a contractor to give you an estimate, find a lender to lend you money in an amount you don't currently know, and close the deal within an unknown budget. My background is in construction so I can come in a ballpark of the estimate but how do these processes work in time.

In my mind, I find a home and because it's a hot market I need to put in an offer quick, so I tour the home and create an estimate in my mind, then while I'm sending that to a contractor and waiting on a bid so that I can make an offer that works financially someone else buys the home. OR the GC is quick and I can offer but the HML isn't satisfied with the LTC vs the ARV and funding doesn't come through.

So should I be calling the HML beforehand and tell them "This is the range I'm looking, can you lend" and then 5 weeks later call them up again and ask them for the money once I found the deal? Should I give a GC a hypothetical and have them on standby? I feel like GCs don't want to waste their time on hypothetical estimates.

I guess my confusion is on the acquisition. I can handle the rehab, I can handle the refinance, I know what I'm looking for in a project, but when it comes to crunch time, I don't know how to get from finding the property to closing the property.

Stephanie P. · Answer

What questions do you have?

Scott Rubzin · Answer

@Daisy Ferreiras what particular questions did you have? please feel free to message me

Daisy Ferreiras · Answer

I’m just outside of Uptown

Aidan Mulligan · Answer

I am as well, I’m trying to get a good understanding of the financials and the best route to take. Would love to talk with someone about their projects.

Anyone is the Charlotte, NC area specialize in BRRRR?

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